Market Size of Commercial Real Estate Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | > 4.00 % |
| Fastest Growing Market | North America |
| Largest Market | Asia-Pacific |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Commercial Real Estate Market Analysis
The size of commercial real estate market is USD 13.5 trillion in the current year and is anticipated to register a CAGR of over 4% during the forecast period. China and Canada experienced growth in office space absorption, whereas Europe and the US saw declined rate. In addition, Asia-Pacific is leading in retail sales and logistics warehouse absorption in the global market.
- The COVID-19 pandemic severely affected the commercial real estate sector, as travel restrictions and social distancing involved public mobilization, commercial works, and gathering facilities. The office, retail, and hospitality sectors were the most affected market segments during the pandemic. Furthermore, the global market is recovering as COVID-19 protocols are relaxed, and sales are reaching pre-pandemic levels.
- The significant commercial real estate market growth is leveraged by urbanization, the commercial sector digitalization, and increasing foreign investments. For instance, in 2021, foreign investments in the European commercial real estate market accounted for half of the capital investments in that region, which is almost EUR 130 million (USD 137 million)
- Many factors influence the development of the commercial real estate industry. Commercial real estate is, by definition, closely tied to the economy and the performance of various sectors.
- There are different types of companies in the industry, such as real estate investors, developers, brokers, managers, media portals, and everyone who faces other challenges and opportunities as industry trends develop.
- During the coronavirus pandemic, the need for social distancing caused offices worldwide to move to a hybrid work model, reducing demand for office space. Meanwhile, increasing e-commerce spending in many countries is leading and driving the need for more warehouses, fulfillment centers, and growth in the industrial and logistics real estate sector, which is paramount to the industry's future.
- Some of the critical issues are the growing importance of technological innovation and environmental, social, and governance (ESG) sustainability.
